Will Solana price revisit $40 before the next bull market begins?

Solana has dropped more than 21% from its June high and is now testing a critical support zone near $60 after whale selling, weakening DeFi activity, and a sharp market-wide liquidation event erased several months of gains.

Solana ( $SOL ) price traded around $66 on June 9 after briefly falling to a local low near $60.41 during last week’s crypto market selloff. The decline accelerated after long-term holders reduced exposure aggressively, with net positions among addresses holding SOL for at least 155 days falling from 3.27 million SOL on May 31 to 2.36 million SOL by June 6.

At the same time, activity across the Solana ecosystem weakened materially. DeFi-only total value locked fell 9.55% during the week, while Solana’s share of decentralized exchange volume dropped from 30.4% to 22.6%.

The reduction in on-chain liquidity arrived as speculative trading activity across memecoins slowed sharply, removing one of the network’s primary demand drivers.

Corporate treasury activity added another source of supply. A June 9 disclosure highlighted that SOL Strategies sold 65,001 SOL at an average price of CAD$87.88, raising roughly CAD$5.75 million to retire debt.

The transaction represented the company’s first publicly disclosed SOL sale since September 2025 and arrived shortly before the token tested its lowest levels of the year.

Macroeconomic conditions have also remained unfavorable for high-beta crypto assets. Persistent uncertainty around interest rates, reduced institutional appetite for altcoins, and capital rotation toward defensive assets contributed to a risk-off environment that amplified local selling pressure across the Solana ecosystem.

Technical structure leaves room for a deeper move toward $40

The weekly chart shows Solana trading below the 0.786 Fibonacci retracement level near $74 after losing a descending channel that had contained price action since early 2026. SOL price is now approaching the final major support trendline that has connected cycle lows since 2021.

A decisive break below the $60-$65 area could expose the next major support cluster between $40 and $30.

Momentum indicators continue to favor sellers. The daily chart shows Chaikin Money Flow at approximately -0.17, confirming sustained capital outflows from the asset. MACD remains below the signal line on both daily and weekly timeframes, while the weekly Stochastic RSI has turned lower after rejecting overbought territory, suggesting bullish momentum has weakened further.

Price action also remains below several former support zones that have now turned into resistance. The first recovery hurdle sits near $74, followed by the $90-$100 range where multiple failed rallies occurred during the first half of 2026. Reclaiming those levels would be necessary before a durable trend reversal can be considered.

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